Bought off plan 2008, not finished, Alpha Bank/Swiss Franc

Have you bought 'off-plan' and having problems?
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big-mistake
Posts: 1
Joined: 19 Mar 2013 15:14

Bought off plan 2008, not finished, Alpha Bank/Swiss Franc

Post by big-mistake » 19 Mar 2013 20:55

Hello all
We are new on here but have taken much solace in the fact that we are not alone in our ongoing issues trying to buy in Cyprus. We feel a little like we have been burrowing our head in the sand hoping this nightmare will go away but it seems to just get worse. I'm hoping some of you wonderful folk on here can give us some help/advice/tips.
Here is our story ....
We bought an investment property which we secured back in 2008 which involved the purchase of a 3 bed apartment (off plan) in Southern Cyprus (near Larnaca). In summary, we paid a deposit which totalled in excess of 28,000 Euros for the property at the time valued at 286,000 Euros once complete. Obviously this valuation was based upon values back in 2008 and comparables at the time, however the value will have dropped very significantly, possibly only half the value.

The developer has been funded by the same bank from whom we secured our Swiss Franc mortgage [ALPHA BANK] (this has now amassed to a sum of 350,000 Euros from the interest charges), and the developer has still has not completed the works some three years after it was due to be completed so we have not been able to secure any rental income, yet we are accruing bank charges/interest for the loan.

We have the following simple questions:

1. Is it likely we could sue the developer for the loss of rental potential whilst the property has been delayed in delivery?

2. Is there likely to be any way in which we could withdraw from our contract?

3. What courses of action exist for our predicament?

Please help if you can with any good contacts/advice, we are saddled with an unfinished property and a growing debt on a property depreciating in value [even more sadly in Swiss Francs]. Sigh

Thank you all.



Nigel Howarth
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Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Bought off plan 2008, not finished, Alpha Bank/Swiss Franc

Post by Nigel Howarth » 19 Mar 2013 23:25

Hello big-mistake and welcome to the forum.

As you say in your message - there are many people facing very similar/identical problems as you and are looking at ways to alleviate their suffering. You need to take independent legal advice on how best to proceed and I have sent you a 'pm' with names and contact details of various legal groups that may be able to help.

To answer your questions:

1. Is it likely we could sue the developer for the loss of rental potential whilst the property has been delayed in delivery?

Yes - if he has failed to deliver what is stated in your contract of sale you could sue in efforts to recover your loss (the rental income).

2. Is there likely to be any way in which we could withdraw from our contract?

I think that is unlikely, but you will need a lawyer to pick through your contract. And it is not only the contract you need to consider - it's your mortgage agreement as well.

3. What courses of action exist for our predicament?

You will need to take professional advice. I have sent you contact details regarding your Swiss Franc mortgage.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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